BlackRock Cuts IBIT In-Kind Creation Minimum to $1 Million

BlackRock has made it easier for investors to convert Bitcoin into shares of its spot Bitcoin ETF, IBIT. The asset manager reduced the minimum in-kind creation size from $25 million to $1 million last month.

In-kind creation allows investors to transfer Bitcoin to BlackRock without selling it and receive ETF shares in return, reducing the burden of self-custody. This process has gained popularity as investors seek safer alternatives after incidents like kidnappings and hacks targeting crypto holders.

Cumulative in-kind creations through IBIT have already exceeded $5 billion, with over $2 billion more than in October last year when the total stood at $3 billion.

Other asset managers are also lowering their thresholds. Bitwise reduced its minimum transaction size to $3 million from $100 million for its first in-kind creation.